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"At present, the liquidator has informed the majority of affected members of the amount payable to them based on verified claims, while the remaining members are still in the process of receiving their notice of payment," the Food, Drinks and Allied Workers Union said.
Salary recovery for the affected Twelve Cupcakes workers has begun with effect from end March 2026, said the Food, Drinks and Allied Workers Union (FDAWU).
The Ministry of Manpower (MOM) has also weighed in, issuing a "stern warning" to Twelve Cupcakes for failing to pay salaries owed to 80 employees after the company shut down on 29 October 2025 and went into liquidation.
Based on the timeline, MOM’s investigations found that Dhunseri Ventures Limited, the parent company, decided to liquidate Twelve Cupcakes on 29 October 2025 after concluding it could not continue operating because of severe cash-flow problems. The Group had been paying salaries in full up to September 2025 despite sustained losses.
Twelve Cupcakes’ management was only informed of the liquidation plan on 28 October 2025, and FDAWU was notified the same day. As a result of the closure, 80 employees were not paid for work done between 1 and 29 October 2025, with those wages originally due on 7 November 2025.
In view of this, MOM reminded all companies that they must comply with the Employment Act, including paying salaries on time. "Should there be a breach of the EA, MOM considers the specific circumstances of each case when determining the appropriate enforcement action", it stated.
"These include the reasons for the salary non-payment, the company’s track record in meeting salary obligations, and whether it had acted responsibly."
In the case of Twelve Cupcakes, MOM assessed that the closure stemmed from genuine financial distress rather than an attempt to dodge salary obligations. A liquidator had been appointed to handle the company’s remaining assets under the Insolvency, Restructuring and Dissolution Act 2018, where employees’ salary claims were ranked ahead of other unsecured debts. On that basis, MOM decided a stern warning was appropriate.
The union added: "FDAWU notes that the salary payouts are being made under the liquidation process and are subject to adjudication including the verification of claims and the availability of funds.
"At present, the liquidator has informed the majority of affected members of the amount payable to them based on verified claims, while the remaining members are still in the process of receiving their notice of payment," it added, noting that any further developments will depend on the progress of the liquidation process.
In the meantime, MOM and FDAWU said they have been helping the affected workers by linking them up with NTUC’s Employment and Employability Institute (e2i) for job matching and career coaching. The Tripartite Alliance for Dispute Management (TADM) has also worked with FDAWU to help 45 mainly union-member employees file claims with the liquidator to recover their unpaid salaries.
FDAWU has also been working with the workers to help them understand and complete required documentation, filing Proofs of Debt with the liquidator, answering questions on tax and procedure, and checking in regularly on the status of payouts.
On the employment front, the union added that it has supported members who were ready to take up new employment by connecting them with opportunities across the Labour Movement’s network, including FDAWU’s network of unionised companies and NTUC’s e2i.
Approximately 400 job vacancies were shared with 70 affected members (about 80 employees were affected by Twelve Cupcakes’ closure). Further, the union has also arranged onsite interviews to facilitate direct engagement with prospective employers.
Lead image / Twelve Cupcakes Instagram
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